mystuff

Realizations

noreply@blogger.com (*_* trade sweetie *_*) — Wed, 09 Jan 2008 04:10:00 +0000

Profitable Forex trading requires an attunement to the "Dao" of the organic wave formed by market movement. Once you see the secret behind this movement that is not explained here you will experience the "Duh!" of realization.

This video might help to have that realization be awaken..

Currency trading course

FOREX SCAM

noreply@blogger.com (*_* trade sweetie *_*) — Tue, 08 Jan 2008 16:50:00 +0000

A forex scam is any trading scheme used to defraud individual traders by convincing them that they can expect to gain an unreasonably high profit by trading in the foreign exchange market.

These scams might include churning of customer accounts for the purpose of generating commissions, selling software that is supposed to guide the customer to large profits, improperly managed "managed accounts", false advertising, and outright fraud. It also refers to any retail forex broker who indicates that trading foreign exchange is a low risk, high profit investment.

One of the first things you must learn about the Forex market is that although it is enjoyable and exciting, there is no magic button that will instantly turn your pennies into millions of dollars. You may have already heard about Forex scams that are filling the marketplace. These companies purposely mislead people into thinking that making money in the Forex is easy and that they have found the “Magic Solution” to raking in booku bucks with a simple click of a button.
Learn Forex

Margin Trading

noreply@blogger.com (*_* trade sweetie *_*) — Tue, 08 Jan 2008 15:23:00 +0000

Trading on a margined basis in foreign exchange is not a complicated concept as some may make it out to be. The easiest way to view margin trading is like this: Essentially when a trader trades on margin he is using a free short-term credit allowance from the institution that is offering the margin. This short-term credit allowance is used to purchase an amount of currency that greatly exceeds the account value of the trader.

When an investor uses a margin account, he or she is essentially borrowing to increase the possible return on investment. Most often, investors use margin accounts when they want to invest in equities but they do not have enough money to invest. These margin accounts are operated by the investor's broker and are settled daily in cash. But margin accounts are not limited to equities - they are also used by currency traders in the forex market.

One of the best advantages of Forex Trading and one of the reasons that its so appealing for traders is that you can't loose more money than what you have spent in the beginning. This is called the "margin", and even if you had a bad trade you know youll never loose more than this.

What is the risk?
   There is always risk associated with margin trading. Traders experience profit or loss on the position size      that they control, not on the small cash outlay that they make (initial margin). Risk can be compounded if      traders over-leverage their trading accounts, or use up almost all of their buying power. Trading in such a      manner can quickly lead to significant percentage losses and even account liquidation.

The risk and return is always going together. The forex margin trading is much speculative, and then, risky. You can allow ten times as much position as trading in the forex margin trading. And so, it just means that you would have to take more than n ten times as much risks at the same time.
Trade Forex

What do Managed Account really means?

noreply@blogger.com (*_* trade sweetie *_*) — Tue, 08 Jan 2008 04:10:00 +0000

Managed Accounts is an investment account that is owned by an individual investor and looked after by a hired professional money manager. In contrast to mutual funds (which are professionally managed on behalf of many mutual-fund holders), managed accounts are personalized investment portfolios tailored to the specific needs of the account holder.

Advantages:

For a beginner trader who cannot put his trust on his own perception and judgment of the market yet, a managed forex account will be a very convenient and wise decision, provided he deals only with a reputable company. He can also rely on the years of experience of that company in order to make sound business decisions.

Management companies who handle managed forex accounts also have insider information because they work with many different banks. They have access to currency exchange rates and market changes that you can use to help you turn a nice profit.

Disadvantages:

The main turn off about managed forex accounts is that they tend to have higher amounts of investment requirements. This ranges typically from $10,000 to $20,000. Those are great figures if your investment is good but they are terrible odds if you lose. If the management company makes a mistake in trading or becomes involved in badly timed investments, losing $10,000 can cause a great deal of headache.

Find out about the cost of hiring a management company. These companies often charge a fee and some commission, so make sure you understand how much you'll be looking at. If somebody tries to slip 'other fees' into your transaction, ask what and why.

Protecting yourself from the scam of the forex trading world.

Forex Training

Speculations of Forex Market

noreply@blogger.com (*_* trade sweetie *_*) — Tue, 08 Jan 2008 02:50:00 +0000

Currency speculation is considered a highly suspect activity in many countries. While investment in traditional financial instruments like bonds or stocks often is considered to contribute positively to economic growth by providing capital, currency speculation does not, according to this view; it is simply gambling, that often interferes with economic policy.

Controversy about currency speculators and their effect on currency devaluations and national economies recurs regularly. Nevertheless, many economists have argued that speculators perform the important function of providing a market for hedgers and transferring risk from those people who don't wish to bear it, to those who do. Other economists however, may consider this argument to be based more on politics and a free market philosophy than on economics.

The overall mood of the forex market is that of uncertainty - so it’s unsurprising that many people are speculating about what’s going to happen next.

FX Trading

Psychology

noreply@blogger.com (*_* trade sweetie *_*) — Sun, 30 Dec 2007 03:29:00 +0000

Is psychology of trading a big problem for all traders? This question has been all over the industry.

It is said that the reason that most traders lose is because they are not psychologically prepared to trade, that is they are not prepared to accept financial risk for something of which they have no control over the outcome. Trading psychology is the reason why there are many winning
systems but yet so many traders still lose money.

Without an understanding of trading psychology, there will be virtually no chance to overcome the fear, confusion, and despair that can be inherent in trading. Ultimately, after a series of consecutive losses, method becomes replaced with a feeling that it is impossible to do anything right.

Learn why many traders fail and how you can succeed in Forex trading by making your trading decisions without the influence of your unrelated emotions by watching this video in youtube.

http://www.youtube.com/watch?v=EUxbOaacipA

Forex Trading Education

-Disadvantages of trading-

noreply@blogger.com (*_* trade sweetie *_*) — Sun, 30 Dec 2007 02:49:00 +0000

In my previous post, we tackle about the advantages and the good side that they will get from trading forex .

This time, we will going to discuss what really are the disadvantages of this whole thing called Forex.

Below are the things that a trader should have to consider:

Leverage -- With huge leverage available to forex traders the danger is that positions which carry too much risk for the account size can be taken on, leading to margin calls. Effective money management rules must be adhered to.

24 Hours Market -- Although it is convenient for the trader to trade whenever it is suitable to him, it can be a rather tough job too. This is because, at times, it is not possible for an individual trader to keep track of the Forex market, 24 hours a day.

This is where a broker comes into the picture. Retail or individual investors should try taking help from a professional broker rather than doing all the dealings himself straight with the huge market.

Brokers -- Retail traders must use a broker rather than dealing directly in the interbank market. The broker will be the counterparty in all transactions and is, effectively, making the market. They can, therefore, widen spreads or even refuse to trade during volatile trading conditions. To avoid dealing with brokers an alternative to forex is to use futures. See online futures trading for more details.

Spreads -- As the retail trader must use a broker to trade, they cannot deal at the interbank rates. A broker will generally quote a fixed spread of 3-20 pips depending on the currency pair. The underlying interbank rate might be as little as 1 pip.

Forex is a very large market but for most retail traders dealing with brokers the odds are shifted against them. Online futures trading provides a much more level playing field for most traders who want to take part in forex trading.

WHY TRADE FOREX - - - reasons to trade

noreply@blogger.com (*_* trade sweetie *_*) — Sun, 30 Dec 2007 02:24:00 +0000

Forex attracts so much investor interest due to the many advantages not found in other financial markets, such as:

High Leverage Up to 200:1

With more buying power, you can increase your total return on investment with less cash outlay. Of course, increasing leverage increases risk. With $1,000 cash in a margin account that allows 200:1 leverage (.5%), you can trade up to $200,000 in notional value.

24 Hour Trading

Forex is a true 24-hour market, open continuously from 5:00pm ET on Sunday to 5:00 pm on Friday. During this time, you can enter or exit the market whenever you like. It's a continuous electronic currency exchange. This is great because you can trade whenever you have spare time.

No Commissions

No clearing fees, no exchange fees, no government fees, no brokerage fees. Brokers are compensated for their services through something called the bid-ask spread.

No middlemen

Spot currency trading eliminates the middlemen, and allows you to trade directly with the market responsible for the pricing on a particular currency pair.

Superior Liquidity

The forex market is so liquid that there are always buyers and sellers to trade with. The liquidity of this market, especially that of the major currencies, helps ensure price stability and narrow spreads. The liquidity comes mainly from banks that provide liquidity to investors, companies, institutions and other currency market players.

Market Transparency

Market transparency is highly desired in any trading environment. The greater the market transparency, the more efficient the market becomes. This is an advantage in any business or trading environment. It means you can manage risk and execute orders within seconds. It's highly efficient and allows you to avoid unexpected 'surprises'.

Online Forex Trading

FOREX GLOSSARY

noreply@blogger.com (*_* trade sweetie *_*) — Sat, 29 Dec 2007 12:57:00 +0000

The most commonly used terminology in forex trading :

Appreciation - an increase in the value of currency.

Ask - the price at which the dealer will sell the base currency in exchange for the quote currency.

Base Currency - the currency that the investor buys or sells (i.e. EUR in EURUSD ).

Bear - someone who believes prices are heading down.

Bid - the price at which an investor can place an order to buy a currency pair; the quoted price where an investor can sell a currency pair. This is also known as the 'bid price' and 'bid rate'.

Bid/Ask - the point difference between the bid and offer (ask) price.

Bull - someone who is optimistic about the market. A bull market is characterized by enthusiastic and sustained buying.

Cross rate - an exchange rate that is calculated from two other exchange rates.

Depreciation - a fall in the value of a currency.

Exchange Rate - the ratio of one currency valued against another currency.

Long - to buy.

Long position - a position that increases its value if market prices increase.

Liquidity - refers to the relationship between transaction size and price movements.

Margin - the deposit required when entering into a position as well as to hold an open position. Your margin status can be monitored in the Account Summary.

Open position - any position (long or short) that is subject to market fluctuations and has not been closed out by a corresponding opposite transaction.

Pip - is the smallest unit by which a Forex cross price quote changes.

Risk - a chance in which an effect will occur. Mainly used as a negative effect.

Quote Currency - the second currency in a currency pair.

Short - to sell.

Short position - a position that benefits from a decline in market prices.

Spot Market - market where people buy and sell actual financial instruments (currencies) for two-day delivery.

Spread - the difference between the bid and the ask rate.

Swap - a transaction which moves the maturity date of an open position to a future date.

Tick - the smallest possible change in a price, either up or down.

Transaction date - the date on which a trade occurs.

Volatility - statistical measure of the change in price of a financial currency pair over a given time period.

Trade Forex

Why Traders Lose?

noreply@blogger.com (*_* trade sweetie *_*) — Sat, 29 Dec 2007 11:54:00 +0000

The very main question of all traders... why do most traders consistently lose?

Many people think trading is the simplest way of making money in forex market. Far from it, I believe it is the easiest way of losing money.

Below are the few of undisciplined trading which lead to losses.

1. Lack of discipline is a major shortcoming

Lack of discipline includes several lesser items; i.e., impatience, need for action, etc. Also, many traders are unable to take a loss and do it quickly.

2. Psychology

Psychology plays a huge part in trading and most traders are not mentally prepared to trade. When money is on the line, fear, greed, and other emotions make trading very hard. Make sure you understand the emotional aspects of trading and be prepared to deal with them before you put your money on the line.

3. Many traders overtrade their account

Future traders tend to have no discipline, no plan, and no patience. They overtrade and can't wait for the right opportunity. Instead, they seem compelled to trade every rumor.

4. Future traders tend to do inadequate research

Traders don't clearly identify and then adhere to risk parameters. Many speculators use "conventional wisdom" which is either "local," or "old news" to the market. They take small profits, not riding gains as they should, and tend to stay with losing positions. Most traders do not spend enough time and effort analyzing the market, and/or analyzing their own emotional make-up.

Currency Trading Course

Overview on Forex Trading

noreply@blogger.com (*_* trade sweetie *_*) — Sat, 29 Dec 2007 10:37:00 +0000

WHAT DO YOU MEAN BY FOREX?

Foreign Exchange, forex or just FX are all terms used to describe the trading of the world's many currencies. The forex market is the largest financial market in the world, with trades amounting to more than USD 1.5 trillion every day. The Forex market is considered an OTC (Over-the-Counter), due to the fact that the entire market is run electronically, within a network of banks, continuously over a 24-hour period.

FX trading is the simultaneous buying of one currency and selling of another one. Currencies are always quoted in pairs, such as USD/GBP where in the USD is the base currency and GBP is the quote currency. The base currency is the basis for buying and selling.

The object of Forex trading is to exchange one currency for another in the expectation that the price will change, so that the currency you bought will increase in value compared to the one you sold.

The most important forex market is the spot market as it has the largest volume. The market is called the spot market because trades are settled immediately, or “on the spot”.

Forex Trading Videos